Red Emperor Resources NL Update on Proposed Californian Lease Acquisitions (3577O)
17 May 2018 - 4:01PM
UK Regulatory
TIDMRMP
RNS Number : 3577O
Red Emperor Resources NL
17 May 2018
17 May 2018
Red Emperor Resources NL ("Red Emperor")
Update on Proposed Californian Lease Acquisitions
The Board of Red Emperor Resources NL ("Red Emperor" or the
"Company") provides the following update with respect to its
proposed Californian lease acquisitions.
As previously announced, in October 2017 the Company signed a
binding Heads of Agreement (HoA) with Oil Ventures Pty Limited (Oil
Ventures) to acquire a number of strategic leases in California,
prospective for oil and gas. Red Emperor was to earn a 60% interest
in a newly established Joint Venture by contributing 100% of the
total budget for the proposed acquisition (USD640,000) after which
RMP would be responsible for its 60% equity interest.
Unfortunately, Red Emperor's proposed Joint Venture partner, Oil
Ventures, along with the retained Californian "landman", White Wolf
Land Service, have been unsuccessful in agreeing commercial terms
with the two majority mineral rights owners of two highly
prospective Areas of Mutual Interest (AMI) identified by Oil
Ventures in the Sacramento Gas Basin.
As a result, Red Emperor and Oil Ventures have now entered into
an amended HoA whereby if either party wishes to lease or explore
in the AMI before 1 May 2020 they will do so under the following
conditions:
a) The parties propose to establish an incorporated joint
venture for the purposes of acquiring two prospective oil and gas
drilling lease packages across land in the northern Sacramento Gas
Basin of California to search for, develop and produce oil and gas
(each, a Lease Package).
b) The parties propose that each Lease Package will be held by a
separate United States incorporated company to be established by
the parties (each, a JVCo).
c) The shareholdings in each JVCo will be 60% as to RMP and 40% as to Oil Ventures.
d) RMP's shareholding will be in consideration of RMP funding
USD400,000 of mutually agreed exploration works in the AMI.
e) Oil Venture's shareholding will be in consideration of Oil Venture's undertaking:
-- the identification and technical review of the two prospects
and their respective Leases, drill targeting and seismic
interpretation at its expense; and
-- farm-out negotiations with respect to the Leases at its expense.
f) Upon the farm-out of a well on behalf of the JV, any
additional technical support from Oil Ventures will be at standard
commercial terms.
While the Company is disappointed in not being able to execute
any lease agreements as anticipated, it remains focused on
reviewing and hopefully acquiring additional oil and gas assets to
complement its current portfolio of projects.
For further information please visit
http://www.redemperorresources.com/ or contact:
Red Emperor Resources:
Greg Bandy +61 8 9212 0102
Grant Thornton UK LLP (Nominated Adviser):
Philip Secrett, Jen Clarke 020 7383 5100
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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